FLOAT  ·  FIRM LEAKAGE OPPORTUNITY AND TRIAGE

Find $5.3M of hidden EBITDA in 90 minutes.

The diagnostic for PE operating partners and CFOs at $50M–$500M mid-market companies. Three documents, ninety minutes, one page. The output is the artifact you walk to your CEO, your CFO, or your investment committee.

  • FormatPDF, 41 pages
  • Time to run90 minutes
  • Inputs required3 documents you already have
  • CostFree
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CHAPTER 1  ·  THE ARITHMETIC

The $5.3 million hiding in your P&L.

Take a $150M revenue mid-market company at 12% EBITDA margin. That is $18M of EBITDA on the trailing twelve months — the median company in the SEAS target range. A 3% revenue leakage on $150M is $4.5M. On an $18M EBITDA base, that is 25% of total profit. Leaking out the bottom of the P&L. Every year. While the executive team reads transformation articles.

$375,000 per month. $12,500 per day. Every day you do not run FLOAT.
Leakage Category Annual Waste Recoverable Capture Method
Supply Chain Inefficiency $6.0M $2.5M Predictive demand, autonomous reordering
Legacy Administrative Burden $4.0M $1.8M AP/AR automation, RAG workflows
Energy and Operations Waste $2.0M $1.0M HVAC scheduling, predictive maintenance
Total $12.0M $5.3M 12–18 months, no capex
// Anchor case: $150M revenue mid-market firm. Recoverable EBITDA scales linearly across $50M–$500M: $50M firm ≈ $1.5M–$2M  |  $250M firm ≈ $8M–$10M  |  $500M firm ≈ $15M–$20M.
CHAPTERS 4–6  ·  THE FRAMEWORK

Three pockets. Thirty minutes each. One page at the end.

FLOAT operates on three documents you already have: the trailing twelve-month P&L, the SG&A breakdown by department, and the vendor concentration report. If you cannot pull these in fifteen minutes, the data infrastructure is the leakage — and that is itself a finding.

— Pocket 01
SG&A Efficiency Gap
$2M–$5M
Annual recoverable on $150M base
  • SG&A > peer median by 2 percentage points
  • Finance & Accounting > 3% of revenue
  • Cost per invoice processed > $3–$4
  • AR DSO > 45 days, no automation
  • AP/AR FTEs > 8 per $100M revenue
— Pocket 02
Pricing & Contract Drift
$0.75M–$3M
100% margin flow-through, fastest payback
  • ≥10% of revenue on legacy pricing (>18 months)
  • ≥5% SKU margin variance, unmanaged
  • Average discount depth > 15% from list
  • Auto-renewals lacking CPI escalation
— Pocket 03
Supply Chain & Vendor Concentration
$1.5M–$4.5M
Largest absolute dollars, strongest exit story
  • Top 3 suppliers > 60% of total COGS
  • No competitive bid in 2+ years
  • Inventory turns > 15% below peer median
  • Energy cost variance > 10% YoY without volume
CHAPTER 2  ·  WHY THIS BOOK EXISTS
65–80%
of enterprise AI initiatives fail to deliver expected ROI — RAND, 2024. Not 20%. Not 30%. Most of them fail. Three failure modes account for the overwhelming majority.
— Failure Mode 01
~30%
of AI failures

Wrong vendor, wrong problem.

The deployment starts with a vendor demo, not a P&L line. The vendor optimizes the line easiest for the vendor to address — not the line that is bleeding cash. FLOAT prevents this by starting with the diagnostic.

— Failure Mode 02
~37%
of AI failures

Scope creep without gates.

A pilot succeeds. Three more workflows are added before the first stabilises. By month nine, the steering committee meets every two weeks to triage exceptions instead of measure outcomes. Antidote: phase gates with non-negotiable criteria.

— Failure Mode 03
~33%
of AI failures

No accountability.

The pilot has no named owner. AI sits in the middle of the org chart — not IT, not Finance, not Operations. The antidote is structural: put the CFO on the hook, because EBITDA is the metric.

WHAT YOU GET

The complete FLOAT book.

Ten chapters. A foreword. A diagnostic worksheet. The 13-line ROI calculator. The 14-day path from diagnostic to pilot kickoff. Free.

  • FWDThe $375,000 You Are Losing This Monthp. 4
  • CH 01The $5.3M Hiding in Your P&Lp. 7
  • CH 02Why Three Out of Four AI Initiatives Failp. 11
  • CH 03FLOAT — The Frameworkp. 14
  • CH 04Pocket 1 — The SG&A Efficiency Gapp. 16
  • CH 05Pocket 2 — Pricing and Contract Driftp. 18
  • CH 06Pocket 3 — Supply Chain and Vendor Concentrationp. 20
  • CH 07Sizing the Prize — Your ROI Calculatorp. 22
  • CH 08The Three Stress Tests Every IC Will Runp. 24
  • CH 09From Diagnostic to Pilot in 14 Daysp. 26
  • CH 10What Comes After FLOAT — The SEAS Systemp. 28
  • APP AThe FLOAT Diagnostic Worksheetp. 35
CHAPTER 9  ·  THE 14-DAY PATH

From diagnostic to pilot kickoff in fourteen days.

The fourteen days between diagnostic and pilot kickoff are where most companies lose momentum. Sixty days of inertia at $12,500 per day is $750,000 gone — the price of reading and not acting.

DAY 01 — MON

The diagnostic.

Block 90 minutes. Pull the three documents. Run the three pockets. Write the named pilot workflow at the top of a separate page. Put your name underneath. You are now the named owner.

DAYS 02–03

Vendor outreach.

Email three vendors that can deliver the named workflow. Five-sentence email. Subject line: "Pilot opportunity — [company] — [workflow] — Q1 demo." If a vendor does not respond within 48 hours, replace them.

DAYS 04–08

Vendor demos.

Three demos. Same scoring sheet. Seven non-negotiable questions: timeline to Gate 1, pilot pricing, accuracy at week 8, three reference customers, ERP integration, kill-switch protocol, SLA refund triggers.

DAYS 09–11

Reference calls.

Three calls. Fifteen minutes each. Three questions: How long was the actual pilot? What was actual accuracy at Gate 1 versus what was promised? Would you choose the same vendor again?

DAYS 12–14

Board memo and CEO sign-off.

Five sections: diagnostic results, selected pilot, risk mitigation, decision required, timeline. Walk it to the CEO. Fifteen minutes. The pilot has a start date by Friday afternoon.

ABOUT THE AUTHOR
Lalit Kumar
B.SC. (MATHS · PHYSICS · CS)  ·  MCA  ·  LL.B.

Author of the Strategic EBITDA Acceleration System (SEAS), the RAPID SEAS Playbook, and the FLOAT Diagnostic Framework. Two decades at the intersection of technology strategy, financial performance, and operational value creation — with deep expertise in agentic AI deployment, mid-market operations, and PE-driven multiple expansion.

The SEAS framework draws on published research from McKinsey, Bain, BCG, Deloitte, Accenture, FTI Consulting, KPMG, RAND, and Gartner; on the NIST AI Risk Management Framework; and on the operational realities of mid-market companies in the $50M–$500M revenue range.

RECOGNISED AS  ·  ICONIC INDIAN LEADER 2025  ·  TIMES OF INDIA
35
Strategic Agents
(SEAS Library)
800+
Pages of execution
tooling in SEAS
1,387
Live formulas across
9 Excel workbooks
5
Go/No-Go gates
across 18 months
YOUR NEXT STEP

Before you venture into the SEAS, make sure you can FLOAT.

The diagnostic is free. The worksheet is yours to keep. The 14-day path from diagnostic to pilot kickoff is in Chapter 9. There is no upsell embedded in the diagnostic itself.

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